Construction manager sought for potential downtown soccer stadium

INDIANAPOLIS — A proposed Major League Soccer stadium for downtown Indianapolis doesn’t really exist beyond some optimistic public statements by politicians and soccer kings and potential owners, but the Capital Improvement Board is moving forward just in case.

The CIB has issued a Request for Proposals for a construction manager to oversee the anticipated $225 million project, likely to be situated at the home of the decommissioned Indianapolis Heliport at Pearl and New Jersey streets.

The CIB has already hired a Kansas City design firm to begin drawing up plans.

“I am optimistic that all the pieces are going to fall into place for an MLS team here in Indy,” CIB Executive Director Andy Mallon FOX59/CBS4. “So we are doing all we can to ensure that when we have the green light, all the foundational steps are complete and we can begin stadium construction right away.”

Indianapolis’ road to building a stadium to land an MLS expansion team is subject to a flashing yellow light at the Indiana Statehouse.

A city source said Indianapolis has submitted both a feasibility study and a taxing proposal to the Indiana Finance Authority, which will weigh the plan before sending the package on to the State Budget Committee.

As Indianapolis is proposing to pay off stadium construction bonds with tax revenues captured from about a dozen potential development sites in downtown, the SBC must approve the scheme before the financing green light is given.

State lawmakers, including Mayor Hogsett’s former controller and chief financial officer, have questions about the figures the plan will be based on.

”I would be interested in looking at the numbers over the period of the lifetime of the project,” said State Sen. Fady Qaddoura, a democrat from Indianapolis. “How much can be sustained from the parcels that will be used within that district? I’ll be interested in learning about, are there any additional incentives from the state level using different tax reviews, not just local property taxes? First, understanding the total cost of the project, second, what are the incentives either from the local level or the state level, and then third, what is the return on investment to Hoosier taxpayers who will be investing in this project?”

It’s estimated that the potential Indianapolis franchise operators, which may be Pacers Sports & Entertainment and the Simon family, would ante up $500 million or more to join the league and then spend another $250 million to build the team.

The franchise operator (the team is owned by MLS) would then contribute $20 million to stadium construction.

Statehouse sources indicate the success of the Indianapolis taxing bid may rest on commitments to attract other outdoor sporting events, such as NCAA soccer matches and concerts, to more fully utilize the stadium.

Qaddoura acknowledged that there are several moving parts to the Indianapolis MLS bid.

“In this case, it would be the league, it would be the team, it would be the construction of the stadium, so when we receive a finance model or a feasibility study, we must look comprehensively at all of the components to understand whether or not the revenue streams can sustain the development of such a project.”

In the late 1970s, then-Indianapolis Mayor Bill Hudnut convinced the city to build the $60 million Hoosier Dome without a commitment of a major league sports tenant.

Qaddoura said Indianapolis has a history of pulling together audacious plans to grow the city’s sports image.

”Over the last 50 years Indianapolis has been transformed through the leadership of many public servants and civic leaders and the engagement of our communities and I think from my perspective as long as we continue having that vision of progress for our city the things that can attract more people to live to work and play in our city will make Indianapolis the greatest city in the United States.”